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35 10. Bandar Industries manufactures a football helmet which requires a special plastic. During the quarter 86 ending June 30, the company purchased and used 5,000 kg of plastic at a cost of $3.50 per kg. According to 87 standard cost for direct materials, each helmet requires 1.5kg of plastic and the standard price is $3.25/kg 88 During the year, the company produced 3,000 helmets. Calculate the price variance for direct materials. 89 a) $1,250 favorable 90 b) $750 favorable 91 c) $750 unfavorable d) $1,250 unfavorable 93 Answer 0 5750 unfavorable $750 favorable 95 96 11. Bandar Industries manufactures a football helmet which requires a special plastic. During the quarter 97 ending June 30, the company purchased and used 5,000 kg of plastic at a cost of $3.50 per kg. According to 98 standard cost for direct materials, each helmet requires 15kg of plastic and the standard price is $3.25/kg 99 During the year, the company produced 3,000 helmets. Calculate the quantity variance for direct materials. 100 a) $1,625 favorable 101 b) $1,750 favorable 102 ) $1,750 unfavorable 103 d) $1,625 unfavorable 104 Answer: 105 106 107 12. True or false: standards are used to help break down spending variances into two categories: price variances and 108 quantity variances 109 Answer: 110 111 13. True or false: when direct labor is used as the basis for applying standard VMOH rates, if the direct labor efficien 112 variance is unfavorable, the variable overhead efficiency variance will be unfavorable. Answer: we are sure to help break down spending 113 114 116